Loading...
•
Dec 31, 2024
Semrush Q4 2024 Earnings Report
Semrush reported strong fourth quarter and full year 2024 financial results, with significant revenue growth and improved profitability, and announced a CEO transition.
Key Takeaways
Semrush Holdings, Inc. announced robust financial results for the fourth quarter and full year ended December 31, 2024, with Q4 revenue up 23% year-over-year to $102.6 million and full year revenue up 22% to $376.8 million. The company also reported a significant increase in non-GAAP operating income and free cash flow, alongside a leadership transition with William R. Wagner named as the new CEO and co-founder Oleg Shchegolev transitioning to CTO.
Fourth quarter revenue increased by 23% year-over-year to $102.6 million.
Non-GAAP income from operations for Q4 was $11.8 million, up from $8.3 million in the prior year period.
Achieved an Annual Recurring Revenue (ARR) of $411.6 million, representing a 22% year-over-year increase.
William R. Wagner was appointed as the new CEO, effective March 10, 2025, with co-founder Oleg Shchegolev transitioning to Chief Technology Officer.
Forward Guidance
Semrush provided optimistic financial guidance for the first quarter and full year 2025, anticipating continued revenue growth and stable non-GAAP operating margins.
Positive Outlook
- Expected Q1 2025 revenue in the range of $103.9 million to $104.7 million, representing approximately 22% year-over-year growth at the mid-point.
- Expected full year 2025 revenue in the range of $448 million to $453 million, representing approximately 20% year-over-year growth at the mid-point.
- Expected first quarter non-GAAP operating margin to be approximately 11%.
- Expected full year non-GAAP operating margin to be approximately 12%.
- Expected full year free cash flow margin to be approximately 12%.
Challenges Ahead
- Reconciliations of non-GAAP operating margin and free cash flow margin guidance to GAAP measures are not available without unreasonable efforts due to high variability and complexity.
- The variability of excluded charges, such as share-based compensation expense and employer taxes, is expected to have a significant and potentially unpredictable impact on future GAAP financial results.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...